The article analyzes and evaluates the development of renewable energy from the standpoint of state regulation and incentives. It is noted that the global production of renewable electricity has increased by 15% over the last year. The periods of introduction of the “green tariff” as an economic stimulus for the development of solar energy, which became the starting point for the development of alternative generation in different countries, are analyzed. The role of institutional factors in the development of renewable energy, such as the free issuance of licenses for electricity generation, stimulating the creation of specialized research areas, technology development and production of relevant equipment, was observed. The necessity of taking into account the regional peculiarity in the state stimulation of the development of renewable energy is proved. The economic efficiency of the state regulation of alternative energy in time measurement per conditional unit of alternative renewable energy stations was calculated, taking the coefficient of proportionality into account. Therefore, the calculation indicates the high effectiveness of government policy in regulating energy in terms of only short-term lag (α = 1.3) and the number of stations 80 percent of full saturation relative to the basic needs of energy consumption. A separate further stage in the development of renewable energy without the introduction and expansion of the “green tariff” has been identified. This approach was introduced in Poland, which ensured the country not only the inflow of foreign investment, but also the formation of free competition among investors.